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Australian house prices and construction activity may have hit a peak, with investment bank UBS “calling the top” of the runaway market. “After housing activity rose consecutively for over four years, its longest ever boom, we are now calling the top and think that housing activity has already peaked,” UBS economists Scott Haslem, George Tharenou and Jim Xu wrote in a note to clients. House price growth nationally is at a seven-year high of 13 per cent, but UBS said it expected growth to slow to 7 per cent this year and drop to between zero and 3 per cent growth in 2018, when higher interest rates and tighter mortgage lending rules weaken demand.